Tips to eliminate your debts
Wednesday, April 7, 2010 14:01We all have debts. Whether from credit cards, bank loans or because they borrow from a friend or acquaintance, we seem always owing money. And it seems that this situation would never end.
But do not despair, give them some tricks here, to pay their debts gradually. This method is called snowball debt (debt snowball in English) because once you’ve paid the debt that occupies number one position in the list, other debt will be in place, but you also have less debt to which you assigning the minimum payment. Furthermore, the debt ceases to exist, you can allocate more money to pay the others. The technique mainly consists of:
1 .- First make a list of all your debts, where the debt to be less great balance at the top of the list: this is not easy, because we tend to deny the existence of our debts, but you must.
2 .- committing as much as you can from your monthly budget to eliminating debt: 10 or 20% to start, depending on how much you win or bills each month. Then, if you can, go slowly increasing. If you can not, try not to lower the initial rate.
3 .- Make the minimum payments for each of your debts: do this with all your debts except the one that occupies number one position in your list.
4 .- For debt number one ever pays the most you can: Keep doing this until the debt disappears. Once you’ve done this, repeat the process with the debt number 2 and so on until you finish with your list.
I hope this technique will be useful and can get rid of your debts.
